Cigarette taxation Free Essay, Term Paper and Book Report
Taxes have been around for years helping local, state, and our federal government pay for the every day expenditures such as roads, law enforcement, and the military. Cigarette tax helps take care of these things as well but at what price to the consumer.
Cigarette tax is an excise tax, which is a tax imposed on the sale of specific goods or services, or on licenses to engage in certain activities. Cigarette tax is levied mostly on the consumer in the form of higher prices. Tobacco companies have put the burden of tax on the consumer to benefit their profit and production needs. Cigarette tax is a way for state governments to achieve two social objectives. 1) To raise cigarette taxes to sway people to quit smoking in the sense that smokers will not want to pay the higher prices for cigarettes. 2) The second objective is to raise government revenue. Raising the taxes on cigarettes helps the government raise its revenue, and allow them to fund social programs.
Cigarette tax affects both supply and demand because as the cigarette tax increases and the price of cigarett......
Word Count: 810
Page Count: 3.2 (250 words a page / double spaced)
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